Frugal living

This is how Corona Virus can attack your royal financial house

how corona virus affect your finances

You have built your royal financial house painstakingly for so many years. You love each and every thing about it. Even a  small damage is enough to spoil your mood. But whether you like it or not, your precious financial house is in grave danger. Corona Virus is ready to pounce on your financial house and ravage it. Here is how. 

1. It is all set to affect your income 

The fear of getting affected with this deadly disease is keeping people at home. Most companies are shut down and many employees across the world are expected to lose their jobs. Economy is almost paralyzed. There is no growth for anybody. 

The unemployment rate is likely to increase after this Corona Virus is evicted from this world. 

No. It won’t go away just after a month but the number of new cases will be low. According to doctors, it will take almost 6 months to eliminate corona virus completely. Until then, sporadic cases will be there. 

Imagine what the situation will be if a company is shut down over a month. There will be absolutely no production in the company and that would put employees’ jobs at stake. Some companies are giving work from home options to their employees. But even then, production will be less and that may lead to a pay cut. If nothing else, corona virus has brought recession in the country. 

Without a decent income, it’s impossible to maintain a strong and beautiful financial house during an economic downturn.  

2. It will lead to loss of money due to forceful buying 

People are in isolation mode. They are at home. You can say all are in house arrest and they don’t know when everyone can get out of the house without any fear. People are panicked and they are leaving no stone unturned to avoid getting infected. The obsession with hygiene and the fear of not getting anything have led to a major problem. Hand sanitizers and toilet papers are out of stock. Some people have bought stacks and stacks of toilet paper whereas others have hardly got anything, Even hand sanitizers are stock out. 

The hysterical story doesn’t end here only. People have overstocked their house, and that has led to overspending. People are on a shopping spree. They are buying groceries, fruits, and vegetables like never before. If anything, people have wasted a lot of money due to forceful buying. 

3. Lots of money is wasted everywhere due to event cancellations 

Airports are closed. Borders are sealed. Trips are cancelled. Events like weddings and convocation are postponed. There is loss of money everywhere. Some event managers are cooperating but others are not giving any refund. The same thing is applicable for the tour organizers. But we can hardly blame them as they too have incurred a huge loss with thousands of trip cancellations and indefinite event postponements. Hotels and restaurants are also incurring huge losses. 

How to protect your financial house

  1. If you have money, keep it in your bank account or retirement savings account.

  2. Take stock of only what you need. Don’t indulge in forceful buying.

  3. If you have stocks, then don’t sell them out of panic. Let the stock market recover first.

  4. Think about an emergency plan you can use if you’re out of work in the next few months.

  5. Don’t participate in any kind of investment plan that makes impossible promises.

  6. Take out a mortgage if buying a home is in your wish list. The interest rate is record low at 3.47%.

To conclude 

Covid-19 is fatal for your financial house. It is all set to break your painstakingly built financial house into tiny pieces. It has crippled industry, isolated society, crashed the stock market, stalled grocery supplies, cancelled major events, increased medical expenses, and so on. Be careful and use the aforementioned tips to safeguard your financial house.